Scenario Analysis of Apple's Strategy to Enter the Car Industry

The autonomous, connected, electric, and shared mobility market is expected to transform mass transportation and the global automotive industry by 2030. Entry of Silicon Valley companies into the automotive industry has created a fertile ecosystem for developing cars of the future. As the infrastructure is in place, Apple could utilize this ecosystem to help establish its presence in the automotive industry.
Considering the recent hiring spree of auto experts and nearly $10 billion spent on research and development, Apple’s entry into the automotive space is expected. Apple could take a product- or a service-focused approach with Project Titan. The aim of this research is to study and analyze Apple’s automotive industry vision, corporate strategy, and investments in key areas including autonomous, electrified, and connected vehicles.

Research Scope:

Look into current and future technology focus in Silicon Valley

Understand Apple’s efforts to enter the automotive industry

Predict possible products and/or service that Apple could offer based on recent talent and company acquisitions/partnerships

Highlight target markets along with sales and revenue numbers

Understand the impact on Apple’s existing product and service mix if it enters the automotive industry

Key Questions this Study will Answer:

What is Apple trying to achieve by entering into the automotive space and how would it disrupt the automotive sector?

What are the possible outcomes of Project Titan? Will Apple come out with a new product or offer software services for automotive companies?

If Apple chooses to manufacture a product, what would it be? What are the expected sales and revenue values that Apple can expect by 2025?

What possible services can Apple offer to the automotive industry by 2021? How can Apple leverage its iPhone customer base to gain popularity for its automotive services?

What are Frost & Sullivan’s three main predictions with regards to Project Titan and what is the rationale behind these predictions?

Apple’s entry into the automotive industry will help it complete its ecosystem comprising devices-software, cloud storage, and home kit thereby offering seamless access to personal data both at home and on the move. Ultimately, Apple is expected to have a prominent presence in the automotive space by 2021, either as an automotive manufacturer or as a service provider—possible scenarios for each are outlined in this research.